Pensioners need £15,000 a YEAR for a decent retirement

PENSIONERS need at least £15,000 a year for a comfortable retirement, according to a new report.

Published: 18:51, Mon, May 19, 2014

A pensioner needs £15,000 per year to have a comfortable retirement, according to a new survey[Express]

There is a sizeable shift in quality of life between those who have adequate savings and those who do not, said The National Employment Savings Trust (Nest).

The group have stressed the need to start saving early and highlighted how small changes to spending habits – such as cutting down on drinking or making a packed lunch – could help workers afford retirement.

Tim Jones, chief executive of Nest, said: “Our findings underline the message that tomorrow's worth saving for. However people access their retirement savings in future, our research suggests most people will want around £15k a year to live comfortably.

“Being able to afford a few extras can make a significant difference in later life.

"Saving for later life is something we all know we should be doing but it can easily slip to the bottom of the priority list.”

Some ways to help save for that retirement [Nest/Express]

Nest calculated that drinking one less pint of beer a week, working out at home instead of at a gym, taking packed lunches to work and cooking at home instead of eating out or having a takeaway would build up tens of thousands of pounds towards a pension in later life.

It also noted there was a massive shift in levels of overall life satisfaction if a pensioner had more money in their later years. Per extra £5,000 income, satisfaction increased by seven per cent.

The survey found that 43 per cent of pensioners living on a household income of £15,000 -£20,000 say they are financially comfortable compared to just 24 per cent of those living on less than £15,000.

The spiralling cost of living – especially the cost of energy and food – is one key worry of the retired.

According to Nest, a third of people living on less than £15,000 find it difficult to afford their household energy bills and a quarter find it difficult to afford groceries.

That drops to just 15 per cent and 9 per cent respectively for pensioners with a household income of £15,000-£20,000.

Women are more likely than men to be living under the £15,000 threshold.